25 Feb Mortgage Approvals Hit 4 Year High
Whether you are buying or selling a home, it is positive to learn there has been an increase in mortgage approvals. According to UK Finance, a total of 46,815 loans were approved in December, which was a 20% increase. This was the highest level of mortgage approvals since August 2015.
There was also an increase in homeowners switching to a new mortgage deal, as approvals for remortgaging increased by 25% in the year-on-year figures. The latest number was 33,738.
This information, and data provided by the Cities House Price Index, confirm the market feeling that there has been an uplift since the General Election. While the “Boris Bounce” may not have happened in the way it was hoped, there is no denying that more people are registering an interest in buying a home and arranging a mortgage.
There is growing optimism in the UK housing market
There is enough evidence to suggest confidence was returning before the General Election. After all, there is usually a lag of two to three months between the application process and the mortgage being approved.
Of course, some will argue that some people were confident about the outcome of the General Election, and were happy to plan for the event. Regardless of the motivation for applying for a mortgage, many industry experts have discussed the “pent-up demand” for housing. A lot of people have delayed making a decision, and it appears some couldn’t wait any longer.
UK Finance states the number of mortgage advances for 2019 stood at £265.8 billion. This is 1.1% less than the 2018 figure. However, given the enthusiasm for the market at the end of the year, it is likely the 2020 numbers will show a more positive value.
Vendors benefit when there are more buyers in the market
While the news that mortgage approvals are on the rise is favourable for buyers, it should also be good news for vendors too. No matter how great the condition of a home is, or how attractively it is priced, if there are no willing buyers, it will be complicated to sell a home. Therefore, with mortgage approvals on the rise, there are more buyers, and this should provide vendors with confidence.
This is something we have experienced in Darlington. As local agents, we are in touch with buyers and vendors, and there has been a notable increase in buyer demand and registrations. If you are considering selling your home in Darlington, there is a growing audience of likely buyers, and we are confident we can connect you with interested parties.
If you plan on selling your Darlington home in 2020, contact Anthony Jones Properties, and we will arrange a property valuation for you. You must enter the market with an accurate price. If there is too high a price, you may struggle to attract buyers, and too low a price can hamper your next move. Whatever move you wish to make this year, get in touch, and we will be more than happy to assist you.